Jenny B (Comment #377) – “My parents always taught that you pay any bills first and if there is money left over you can choose to buy something or save. My dad also told us that from our very first paycheck we should put 10% in our savings. If we did it from the start we would never miss it…and he was right!”

Kim (Comment #31) – “Pay yourself first, even if it’s only a couple dollars. Put that money away now so you can live on it later.”

Theresa B (Comment #1350) – “If you buy something you “want” (not need) you must get rid of an item you already have. I can not tell you how many times, even today as an adult, that I did not buy the item because I did not want to get rid of anything else!!”

CONGRATULATIONS winners, I have already sent emails to each of you to request your mailing address!

************

I do not remember the first time I read Dave Ramsey’s mantra, “Live like no one else, so later you can live like no one else.”, but I wish I’d heard it earlier in my life; better yet, I wish I had heard and implemented it earlier in my life.

Jeff and I choose to speak openly with our kids about family finances; specifically, our early, and not-so-early, poor financial decisions. When possible, we take every opportunity to link the repercussions we experience as a family with the wise and not-so-wise choices we made and sometimes still make. We feel it is important for kids to realize their financial choices today affect their lives tomorrow.

So, each time we knock out another debt–whether a car loan or someone’s braces, we make it known to the kids. Our monthly budget sheet loses a line item which frees up money, and we can decide whether to spend, give, save or if needed, apply the monies to any debt.

Dave’s Daughter – An “Insider’s View”

Having already read multiple Dave Ramsey books, I looked forward to reading this book mostly for Rachel Cruze’s “insider’s view.” I was curious what it must have been like being raised by one of the leading financial authors and motivational speakers for debt eradication. Cruze was born the year her parents filed bankruptcy and grew up watching her parents learn how to take control of their money.

Now that she has spent the last decade educating students and young adults regarding how to handle their money and stay out of debt, she has proven the adage, “more is caught than is taught!”

Practical Steps for Parents

Smart Money Smart Kids is not a financial program or a curriculum, but instead a 250 (or so) page book with “practical steps parents can take to teach their kids about money basics like working, spending, saving and giving, as well as how to deal with bigger challenges like avoiding debt, paying for college, and battling discontentment.”

Written for parents of kids from toddler age to young adults, it reads with the ease of a journal entry, but with the common sense of a “How-to” book. I’m sure I tried Jeff’s patience reading to him from my many dog-eared pages and highlighted passages.

I appreciate that Cruze boldly states there is nothing wrong with spending, when done wisely. She pointed out that some of us have a more natural bend toward spending while others toward saving with neither more right than the other. Directing a child’s spending habits along the way–like enforcing the “sleep on it” rule for large purchases–was how her parents taught patience and alleviated impulse buying.

After reading the book, Jeff and I switched our kids’ allowances to commissions. They now make what they earn, and because our budget requires a cap, they know they can each earn up to $50/month, which does not necessarily mean they will. We agreed with Ramsey that the word allowance “implies that a child is ‘allowed’ a certain amount of money just for living and breathing.” We provide all our children need, but working is their means to earn the extra money they want for movies with friends or to buy a newly released video game.

Another aspect of the book that eases the application of some of the concepts are the age-appropriate suggestions both authors share. What makes sense for a 4-year-old and 14-year-old are entirely different and require different approaches.

Chapter Nine, “Contentment: The War For Your Child’s Heart” is my favorite chapter because I believe discontentment stands at the root of so many of the financial hardships people face. It comes with many faces, but it ends in destruction more often than not. Ramsey and Cruze tackle this subject with fervor.

I particularly liked this:

“Humility is a valuable virtue, because it breeds gratitude, which is unbelievably attractive, and bodes well for your child’s adult life. And of course, gratitude is the best antidote to a lack of contentment.”

While Smart Money Smart Kids naturally repeats several of the themes in Dave Ramsey’s other books, the co-authorship with his daughter makes its tone more personable. I would recommend it for parents with kids of all ages and think it’d make an excellent baby shower gift too. Why not study up for what lies ahead?

HERE’S HOW TO ENTER.

To enter the giveaway, answer the following question in the comment section below.

As parents we are responsible to model wise financial choices and teach them to our children. What is the single most important financial lesson you learned from your own parents or grandparents?

THE RULES/DETAILS:

» One entry per person, please.
» Participants must be in the Continental U.S.
» No entries after 12:00 PM (CST) on Wednesday, October 22, 2014
» Winners will be selected at random and announced Wednesday after 1:00 PM (CST).

THANKS FOR PARTICIPATING! COMMENTS ARE CLOSED – THE WINNERS ARE ANNOUNCED AT THE TOP OF THE POST!

ABOUT THE AUTHOR: Since 2001, Heather Sanders has worked from home in the following industries: web design and development, branding and consulting, web graphics and social media promotion, and copyediting and freelance blogging. Wanna start a blog? Looking for someone to copyedit or proof your posts? Need some social media graphics? Contact Heather today!

Heather Sanders

Hi, I'm Heather. I'm married to Jeff, the love of my life, and together we've raised and homeschooled our three kids: Emelie, Meredith, and Kenny.
Since 2001, I've worked from home in web design and development, branding and consulting, freelance writing, ghost blogging, and blog content management.

Heather Sanders' blog:

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Comments

Carolyn n

Start a savings account at a young age.

http://magicslime@aol.com Monica R.

To save rather than to spend money right away. If i still want something after a certain amount of time, then maybe buy it. But if I have found a way to live without it, then I guess I didn’t really need it afterall.

Tedi

To participate in your employers 401k program from the very first time you are eligible and to increase by 1% each year until you reach the maximum contribution amount.

jep/judy

I learned watching my parents that working hard and saving money allows you to buy what you need to live and giving generously to others feeds your soul. We also did lots of “free” activities like going to the park to play and going to the library for books to read, not everything fun costs money.

Laura Moore

saving money – being frugal but also enjoying life and spending when needed

http://n/a JYM

My parents lived through the Great Depression and never could afford home ownership until they were in their late 40’s. Eventually, they were able to purchase a property but, in their eyes, a home was a “want” not a “need”. We always had a roof over our heads and food on the table but extra money was pit iinto the house find. Unfortunately, my dad never believed in life insurance and when he passed away at a relatively early age, my mom had to sell the home to have funds to live on. Lesson? Look at the big picture and think long term as to what money means and what it “needs” to be used for first.

Jaxonn80

Save your money and work toward a goal — don’t get deep into debt just because you have to have something. You will treasure it more if you wait and work for it. Sometimes, by waiting, you realize that you don’t really want or need it.

Sharon Anne

My parents taught me that money saved when I was young would work for me all my life. That is so true. I also pay myself first. Portions of each paycheck go into different categories of savings for retirement (401k and TSA), car/insurance, vacation, college savings, home (taxes and improvements), health account, and charity. The rest goes into a general account. They taught me to pay off my credit card balance in full each month. When I need to buy something, the money is already saved in one of my accounts.

Beth

Save early, and buy things (like furniture) that last so that you don’t have to replace them all the time.

http://Www.missionscotland.com Jordan @ Mission Scotland

I’m forever thankful my parents taught me to tithe (or give a tenth), with my money before I do anything else. Giving of our first fruits is the number one thing my husband and I can do to be a better steward of what God has given us!
A long, long time ago my husband and I did Financial Peace University with Dave Ramsey. The things learned and especially the envelope system has been something we still use to this day. Life changer for us, our marriage, and our finaces!

Melissa Presley

That i had to go to work..only problem is the lesson stopped there..would really enjoy a copy. Thanks

Pat O.

My parents were extremely poor. I watched my mother many times working out their bills on the back of an envelope at the kitchen table. I learned that you don’t spend money if you don’t have it. They never had a credit card (and they died in their 80’s).

To give back. Tithing is so important. God watches over us and blesses us. He gives us our wants, needs, desires but we are responsible for giving to further His work. So giving is first then being a good steward of what we have been given. But that doesn’t mean we can’t spend and have fun with our money but just to spend it wisely.

Cheryl

Using coupons

Patty

They are crazy irresponsible spenders. So I am a saver

Amanda

Work hard! My parents used a cash envelope system long before it was the cool thing to do!

kathny

Live below your means. I was raised without a lot of money, yet my parents managed to feed, clothe, shelter and educate us and they had enough money saved to retire comfortably. We never took fancy vacations or had expensive “stuff” that others had, and yeah, there were times when my siblings and I wish we could have had more than we did, but the payoff, and when we REALLY got the lessons were as adults, seeing our parents financially stable at a time when they definitely need to be. They are still frugal, but debt free in their own home. Some of my friends who seemingly had so much more then we did growing up are now financially supporting their elderly parents while struggling to keep themselves above water and try to save for their own retirement so they don’t continue the cycle with their own children.

Tiffany

To give to God first and then pay your bills.

Lauralee

My mom raised us as a single mom and I watched her cooking home coked meals and using coupons and not being extravagant and now in her retirement she is not worried, but secure.

Aracele C

My parents always said to work to save money don’t spend it on just anything that you think youwant I learned a lot from them since they came from poor families and then came to the USA not knowing anything from here or anyone and now my dad has his own cabinet business makes me feel proud of him he worked hard and saved his money wisely.

Sheri

Tithe and have a long term and short term savings.

Kathy Anne

To tithe. Always. Without thinking about it.

http://dominiquespeaks.blogspot.com Dominique

Without a doubt, my parents taught me to work hard. I learned it pays off. Also, taking the initiative to say “what next” to your boss is something I’m passing on to my four daughters now.